Former Mamtek CEO Bruce Cole has ended his fight to be extradited to Missouri, where he faces charges related to the collapse of a project to build an artificial sweetener plant in the town of Moberly.
After refusing last week to be extradited, Cole reversed course at a hearing today in Orange County, California, and waived extradition. He is charged with diverting $700,000 in bond money to cover personal expenses. That included around $250,000, which was directed towards a failed attempt to prevent foreclosure on his home in Beverly Hills.
The former CEO of Mamtek is fighting extradition to Missouri.
At a court hearing today in Santa Ana, California, Bruce Cole refused to be extradited, which means that he can’t be sent back to Missouri unless the Governor of California asks the court to order it. A spokeswoman for the Missouri Attorney General’s office says that request is being expedited.
Two years ago the small northeast Missouri town issued $39 million in bonds to get the company to build an artificial sweetener plant. Mamtek later missed a bond payment and construction halted, and Moberly’s bond rating was downgraded as a result. State Auditor Tom Schweich (R) said the due diligence procedures used by the DED were woefully inadequate.
UMB Bank says assets from a failed artificial sweetener facility in Moberly will be auctioned this fall.
The bank is the bondholder trustee for the central Missouri project that was to be operated by Mamtek U.S. Inc.
Moberly issued $39 million in bonds to finance construction of the plant, and the state offered about $17 million in incentives. Work stopped last fall on the partially built factory after Mamtek missed a bond payment to Moberly. No state incentives were paid.